Forex market intervention aims met with lower fall in reserves: RBI article

The Reserve Bank of India (RBI) has been successful in achieving its foreign exchange market intervention goals with a progressively lower drawdown in its reserves, an article by staff of the central bank said.

This is largely owing to the accumulation and timely use of foreign exchange reserves by the RBI, which has enabled the central bank to successfully intervene in the currency market during successive global high-volatility episodes, the article released in the RBI’s August 2022 Bulletin said.

The RBI intervenes in the foreign exchange market through sales or purchases of dollars to curb excessive volatility in rupee.

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